After going through some tough times, the UAE property market is back to business yet again. If certain reports are to be believed, in the year 2021 the Emirates witnessed one of the biggest jumps in the property sector in recent times. Previously, the property segment suffered a lot because the supply outstripped the demand and of course, the Covid-19 pandemic also played a huge role in stifling growth. However, the realty scene in the Emirates has bounced back well from all the adversities now. Hence, it begs the question, what is the future of the property market in the UAE? Come let us find out.
In order to make any conclusion regarding the future of the UAE property sector, present happenings need to be taken into account. So, now we should ideally go through certain significant markers that are indicative of the future of the property market in the UAE.
Market experts are of the view that the property business is certain to grow more, and it has already made a move in that direction. The upward trajectory it showed in 2021 is very much reflective of the same trend. So, it can be safely said that the sector is all set to achieve more in the years to come.
Dubai & Abu Dhabi Lead The Race
According to a news report, in 2021 property transactions saw a dramatic rise in Dubai and Abu Dhabi compared to the previous 2 years. To illustrate the same with an example, close to AED 115 billion got transacted in Dubai and AED 72 billion in the UAE capital.
Despite the price rise in real estate, the demand is very much intact in the UAE. This is a good sign as it shows there is enough demand to balance the supply and with certain visa reforms that have been implemented of late, the property segment will receive a big shot in the arm.
As per market projections, villas represent just 15% of the stock in the market between 2022 and 2025. This implies that there is a huge interest in the villas among the buyers and they are poised to overtake apartments in the property arena going forward. According to the delivery trends for 2021, in Dubai alone out of the 38,000 residential units which flew off the blocks 16% happened to be villas.
Coming to the capital city, last year alone the sale of properties touched AED 11,815 million. It shows that Abu Dhabi also holds a lot of promise when it comes to future of the UAE real estate.
Starter Homes See Huge Demand
In another interesting development, a lot of demand in terms of property in the UAE came for starter homes. This is a kind of accommodation that families usually look for the first time they are in the country. To purchase this type of property, people generally dip into personal savings and opt for mortgages.
So, the UAE realty, in the long run, seems to be in a comfortable zone and the good times will continue in 2022 as well as beyond. Hence, for those who want to invest in realty, there will never be another good time as the mortgage loans, at present, carry low-interest rates and the financial sector of the country is also very stable.
